Russian rouble up slightly vs US dollar on Ukraine peace hopes

MOSCOW, Feb 24 (Reuters) - The Russian rouble traded at a five and a half month high against the U.S. dollar on Monday, on expectations of a peaceful settlement in Ukraine as the war enters its fourth year.

At 0920 GMT the rouble RUB= was up 0.7% at 87.90 against the dollar in the over-the-counter market, the strongest since early September. The rouble weakened 0.4% to 12.06 against China's yuan, the most traded foreign currency in Russia.

"The triggers for strengthening have not changed – the news background, expectations of the removal of the geopolitical premium, as well as the gradual increase in exporters' activity," said PSB bank analyst Denis Popov.

The Russian currency has gained 23% against the dollar and 12% against the yuan this year, mostly on expectations of better relations with the United States under President Donald Trump.

The rouble is still down about 10% since February 24, 2022, when Russian President Vladimir Putin sent troops into Ukraine.

"If we talk about the exchange rate of exactly 88 roubles per dollar, it is certainly stronger than the balance we have seen and which is currently in our forecasts," Russia's Economy Minister Maxim Reshetnikov was quoted by the Russian agencies as saying.

The rouble did not move on the latest EU sanctions package, which included a ban on primary aluminium imports and sales of gaming consoles, as well as listing owners and operators of 74 so-called shadow fleet vessels used to evade sanctions.

Dollar/rouble futures on MOEX, which serve as guidance for over-the-counter rates, were up 0.1% at 89.15. The Russian central bank set the official exchange rate at 88.17.